Technological Innovation, Organizational Change and Product Related Services

28 Pages Posted: 30 Oct 2012

See all articles by Arman Avadykian

Arman Avadykian

University of Strasbourg - BETA

Stephane Lhuillery

Neoma Business School; University of Strasbourg - Bureau of Economic Theory and Application (BETA)

Date Written: October 29, 2012

Abstract

This article investigates technological and organizational antecedents of product related service (PRS) strategies implemented by manufacturing firms. We examine the way manufacturing practices and the related technological and organizational innovations impact PRS offered by firms. Using an original sample of 1,425 German manufacturing firms, we propose a cross-sectional econometric model in order to test the likely impact of technological change (product and process innovations) and organizational change (task integration, team work and decentralization) on PRS profiles. Our results show that product innovation, the adoption of modern manufacturing processes and integration practices all impact both the likelihood of offering PRS but also the type and bundle of PRS proposed. More precisely we show that leadership in product innovation and the early adoption of manufacturing processes are significant drivers of PRS. With respect to organizational change, our findings show that integration practices are more prevalent than team work and decentralization when considering a firm’s ability to offer PRS to customers. However, compared with product innovation and integration practices, the impact that advanced manufacturing processes have on PRS is found to be rather small.

Keywords: technology, innovation, organization, servitization, product related services

JEL Classification: O3, L2, L6

Suggested Citation

Avadykian, Arman and Lhuillery, Stephane, Technological Innovation, Organizational Change and Product Related Services (October 29, 2012). Available at SSRN: https://ssrn.com/abstract=2168370 or http://dx.doi.org/10.2139/ssrn.2168370

Arman Avadykian

University of Strasbourg - BETA ( email )

61, avenue de la foret noire
Strasbourg, Alsace 3000
France

Stephane Lhuillery (Contact Author)

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
France

University of Strasbourg - Bureau of Economic Theory and Application (BETA) ( email )

France

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